How to trade news BCE and NFP

How to trade news BCE and NFP

2 December 2015, 19:32
Lorenzo Sentino

The current week is the most important of the month because it will provide two days of high volatility that may significantly affect the trend throughout December. In fact, tomorrow is animated by the Press Conference of the ECB and NFP data will be released Friday.

The performance of spread trading in November

Our portfolio of spread trading has ended the month of November with a profit of +402 pips but also recorded an high DD (about 10%). Today, however, we sold some positions with a loss of -170 pips and other remains still open. The total gain of 2015 to date is +2457 pips.

We remain chatting forex operations for all customers and exclusively for all those who attended the forex seminar with XM in Naples on November 28 (see photos here).

How to trade on news ECB and NFP

Tomorrow and Friday we position on EURAUD Long and EURCAD Short following a spread that is back positively correlated and in seasonality. So in this spread trading we rely not only correlations between currencies but also to a seasonal effect.

Seasonality us back is the five years that the 10 years, a high percentage of probability of upward movement in the spread EURAUD vs EURCAD (or vice versa downward).

We can also evaluate the closures in the spread of 15 and 21 and you can see a period (about 15 days) of the uptrend that will try to take advantage.

We will update you on the results of trading on the weekend.

Share it with friends: